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Fruits and Vegetables in Vietnam - International Food Policy ...

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production, most of which occurred <strong>in</strong> the first two years (1990-1992).<br />

Box 2-1. Litchi <strong>in</strong> Luc Ngan district of Bac Giang<br />

Luc Ngan district of Bac Giang is well known for its litchi production. Litchi was <strong>in</strong>troduced to the<br />

district <strong>in</strong> the 1950s by a demobilized soldier from the lowl<strong>and</strong>s. Litchi production did not take off<br />

immediately, however. It was only <strong>in</strong> the 1980s that local officials identified the litchi has hav<strong>in</strong>g<br />

potential for rais<strong>in</strong>g local <strong>in</strong>comes <strong>and</strong> earmarked l<strong>and</strong> for its cultivation. In just a few years, litchi output<br />

<strong>in</strong>creased dramatically. Today, accord<strong>in</strong>g to local officials, “nearly all households” <strong>in</strong> Luc Ngan grow<br />

litchi.<br />

Much of the fruit is dried for transport to distant markets, <strong>in</strong>clud<strong>in</strong>g Ch<strong>in</strong>a. The district has an estimated<br />

2000 driers. The largest drier is the Bac Giang process<strong>in</strong>g plant.<br />

District authorities are said to assist farmers with market <strong>in</strong>formation. Likewise, farmers from Luc Ngan<br />

district have been recruited to share their expertise with farmers from other prov<strong>in</strong>ces.<br />

Source: <strong>Vietnam</strong> News Service, 2 July 2001.<br />

Note: The article states that the capacity of the Bac Giang process<strong>in</strong>g plant is 400,000 tons per year, but<br />

this is almost certa<strong>in</strong>ly an error s<strong>in</strong>ce this is greater than <strong>Vietnam</strong>’s annual production of litchi.<br />

The value of vegetable <strong>and</strong> bean output grew at annual rates of 4 percent <strong>in</strong> the 1980s <strong>and</strong> 7.6<br />

percent <strong>in</strong> the 1990s, exceed<strong>in</strong>g by a significant marg<strong>in</strong> the growth rates of food production. The<br />

growth <strong>in</strong> the value of output also exceeds the growth <strong>in</strong> the volume of output (5 percent), imply<strong>in</strong>g<br />

that the per-kilogram value of vegetables has <strong>in</strong>creased. This could be due to higher real prices for<br />

vegetables or a shift <strong>in</strong> the mix of vegetables toward the higher-value vegetable crops. <strong>Vegetables</strong><br />

<strong>and</strong> beans now account for about 7 percent of the value of crop production <strong>in</strong> <strong>Vietnam</strong> (see Table 2-7<br />

<strong>and</strong> Table 2-8).<br />

The value of fruit production has grown at 3 percent annually over the 1990s, somewhat faster<br />

than population growth, but slower than the value of food production. S<strong>in</strong>ce the volume of fruit<br />

production has grown by 6.5 percent over the period, this implies that either real prices of fruits have<br />

fallen or there has been a shift toward lower-value fruit products. Fruit production is also about 7<br />

percent of the total value of crop production, down from 10-11 percent <strong>in</strong> 1980 (see Table 2-7 <strong>and</strong><br />

Table 2-8). Given the difficulties of valu<strong>in</strong>g horticultural production <strong>in</strong> the 1980s before agricultural<br />

markets were liberalized <strong>and</strong> the difficulty <strong>in</strong> construct<strong>in</strong>g a reliable price <strong>in</strong>dex, these results must be<br />

<strong>in</strong>terpreted with some caution.<br />

The economic reform process <strong>in</strong> Viet Nam has stimulated the production of fruits <strong>and</strong><br />

vegetables <strong>in</strong> three ways. First, by rais<strong>in</strong>g the production <strong>and</strong> domestic availability of rice, rural<br />

households are able to allocate part of their l<strong>and</strong> to fruits <strong>and</strong> vegetables with some assurance of be<strong>in</strong>g<br />

able to produce or buy the rice needed for household consumption. Second, by exp<strong>and</strong><strong>in</strong>g domestic<br />

<strong>in</strong>comes, the reforms have <strong>in</strong>creased the dem<strong>and</strong> for fruits <strong>and</strong> vegetables as consumers seek to add<br />

diversity to their diets. The two largest cities are particularly important as sources of dem<strong>and</strong> for<br />

Chapter 2. Patterns <strong>and</strong> trends <strong>in</strong> fruit <strong>and</strong> vegetable production Page 2-4

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